Minor Project: Critical Analysis of Consumer Brand Preference for Apparel & Acces sories Research & Compiled by: Akansha Choudhary

Bhavik Gandhi Sunil Kerketta M/FMS/08/ 03 M/FMS/08/10 M/FMS/08/31 Batch: 2008 – 10 Master of Fashion Management DEPARTMENT OF FASHION MANAGEMENT STUDIES NATIONAL INSTITUTE OF FASHION TECHNOLOGY MUMBAI Secondary Data Source Statistics Tool Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Certificate CERTIFICATE FROM GUIDE REGARDING COMPLETION OF WORK This is to certify that the Project entitled “Critical Analysis of Consumer Brand Preference for Apparel & Accessories” submitted towards the partial fulfilled of t he Degree in by Akansha Choudhary Bhavik Gandhi Sunil Kerketta (M/FMS/08/03) (M/ FMS/08/10) (M/FMS/08/31) is their original work under my guidance and the results are based on the resear ch done by them. (_________________________) Name of Guide/Designed Date: Place: 2 FMS Dept., National Institute of Fashion Technology, Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories ACKNOWLEDGEMENT We are grateful to NIFT for providing us an opportunity to do research work on “Cr itical Analysis of Consumer Brand Preference for Apparel & Accessories”. We expres s our whole hearted thanks to our guide Mr. Amit Aggarwal for his encouragement and moral support in organizing my work and giving us valuable tips for making i t presentable. We will be failing in our duty if we do not mention the name of our CC Mr. Sushi l Raturi and Ms. Garima Srivastava for their help in our Minor Project. We are also thankful to Mr. N. Muthu Ganesh for providing us the details of cond ucting the research and SPSS from its inception.

We are appreciative of Mr. Bandi who allowed me to get access to the library and for motivated us to finish the study on time. Lastly, we are also obliged to people of Mumbai & Navi Mumbai for providing us t heir valuable feedback to the questionnaire used to compile our primary data. NAME:_____________________ ADDRESS:__________________ Master of Fashion Management Date of submission: 3 FMS Dept., National Institute of Fashion Technology, Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Contents Certificate..................................................................... .................................................. 2 ACKNOWLEDGEMENT ........... ................................................................................ ... 3 Introduction.............................................................. .......................................................... 5 About Brands and Fa shion .......................................................................... ............... 6 Literature Review ............................................ ................................................................. 8 Brand ...... ................................................................................ ........................................ 9 Fashion & its relation with brand.... .......................................................................... 12 Ma rketing communication applied to fashion products............................... ............. 12 The brand image in the marketing communication process ........ ............................. 13 The store image in marketing communication proc ess............................................. 14 Qualitative research ....... ................................................................................ ............ 15 Statistics Tools................................................ ............................................................ 16 Objectives ..... ................................................................................ ................................... 17 Consumer confidence and consumer market i n India .......................................... 19 Consumer Confidence ...... ................................................................................ ......... 19 Consumer Markets .................................................. .................................................. 21 Environment for the appare l and retail sector in India.......................................... 22 ATKear ney Report ..................................................................... ............................... 22 Ernst & Young Report ........................ ...................................................................... 25 Unders tanding buying pattern of consumers in India ................................... ........ 26 Consumer Preference for apparel brands ............................. ................................. 28 Primary Data Analysis with help of SPSS ... ........................................................... 32 Sample Analysis.. ................................................................................ ...................... 33 Shopping Preference – Time Period & Format of store .... ....................................... 34 Customer spending & its relation with

. Similarly even a manager has to consider while introducing a product or brand............ 38 Impulse Buying Vs............ Planned Buying...... which media do they pref er to know about the brand.. 3 Apparel and fashion industry in India is in its growth stage.. and the emergence of the kind of trend-conscious consumers that India has not seen in the past...... the price range of the fashion products.... National Institute of Fashion Technology... Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories About Brands and Fashion “Consumers are evolving entities............... Indian Brands Vs........... the development of modern urban lifestyles. . Indian consumer markets are changing fast................. with rap id growth in disposable incomes.......... More and more budget is allocated to these activ ities in order to the lure the consumers...................................... In ternational Brands .............. These a re the questions which consumer considers while choosing a brand.................... ... 41 Appendix .... ...... They are increasingly fashion and brand conscious and select labels which define who they are or who they want to be. 41 Conclus ion .................. 35 Types of Media Influence f or Fashion Brands on people . low ...... Brands build cu stomer loyalty by delivering excellent value no matter the price point-high..................... .. it is very essenti al to study how consumers make their choices in Apparel & Fashion category where there are several brands in the consideration set of a consumer.... product.... The financial risk being high consumers do switch from one brand to another due to sales promo tion offers and personal comfort zone................................ 39 Selection of one brand over other ... who prefers the brande d apparel and fashion products......................... ......... both as a global ba se and as a domestic market............. w hat schemes do consumer prefer for what kind of brands......... and related schemes........ 42 4 FMS Dept. National Institute of Fashion Technology.......average frequency of spending ... Their aspirations & expectations are continuousl y changing............... Today’s shoppers are more intelligent............................................ Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Introduction 5 FMS Dept...... In such a scenario.... Hence it would of interest to a marketer to learn about the consumer preferences with respect to sales promotion offer...... discerning & tuned to their ind ividual preference................. 36 Influen ce of Celebrity endorsement for fashion brand ....” – Shopper’s Stop Ltd 1 India represents an economic opportunity on a massive scale..................... 37 Relative Preference of consumer while selecting garment & accesso ries .......... The biggest challenge for all the brands is to create loyal consumer who love them........... Usi ng consumer sales promotion to differentiate one‟s offer has become an order of th e day in matured urban markets................ 40 Consumer stand on Emergence of Women & Kid’s wear brand ..

and con fidence in performance. a marketing appro ach. so apparel purchases now compete directly with other choices from the technology. 4.shopper sstop. 3. To the consumer. chapter 1 – I ntroduction KPMG – Consumer Markets in India – The next big thing – Executive summary Paper .Branding of Fashion product : a communication process. Universidade Do Minho (Portugal).com & page 17 The global branding report – 2007 by Stacy Backer.. or medium. Paula da Costa Soares. National Institute of Fashion Technology. meaning necessities are being weighed a gainst apparel. Fashion must have value and purpose and truly resonate to the co nsumer. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Literature Review 8 . and of purchase process of fash ion products is extremely important to design products collections as well as to placement of these products in market. a fash ion product must satisfy the demand target. National Institute of Fashion Technology. selfexpression. 2. Rising costs of living around the world cause consume rs to stretch their incomes more thinly. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Today‟s global apparel environment is tougher than ever for brands. durability. Brand names when linked with lifestyle. Considering a marketing approach. Annual report of Shopper‟s Stop Ltd is available on www. I nstituto Politecnico do Porto – ESIEG (Portugal). 2 Fashion is direct and in dividual communication. Consum ers consider fashion as part of an overall budgetary spend. From a proliferation brands fierce competition from retailers acting as brands smarter consumers the consolidation of department stores mass retailers redefining themselves luxury d esigners creating for mass the demand for luxury goods the growth of the discoun t sector All of this adds up to one stark fact: those brands that break through the noise and communicate their message to the consumer directly and clearly – in a way tha t means something to them. bea uty and general lifestyle categories for the discretionary rupee. behavior. and consistent fit. It also nourishes industries with high research requirem ents due to its present characteristics: Fast mutation of its specificities It t ime to market Obsolescence of the product The understanding of consumer‟s desires.. quality fabrics. so the main idea (message) behind th e brand (sender) must reach the consumer (receiver). 6 FMS Dept. a brand name represents familiarity. Strong brands with consistent powerful messages can create loyalty and a sense of worth that transcends the burden of choice. 7 FMS Dept. and aspirations epitomize intangibles that are desirable to the consumer.. entertainment. There are many reasons for the emergence of this challenging climate. Value includes styling. 4 Notes: 1. by Graca Guedes. consistency.

Brand equity2 is added value endowed to products and services . or design. brands must create.firmly establishing the totality of brand meaning in the mind of cu stomers by strategically linking a host of tangible and intangible brand associa tions 3. trademarks. At the heart of great brand is a great product or service backed by c reatively designed and executed marketing” – Kotler & Keller1 Brand Brand2 according to (American Marketing Association) is „ A name. and channel relationships. rational. This value may be reflected in how consumers think. 2. and act with respect to the brand. Brand Equity model – Aaker Model2 – Professor David Aaker views brand equity as a set of five categories of brand assets and l iabilities to a brand that add to or subtract from the value provided by a produ ct or service to a firm and/or to that firm‟s customers. Response . or combination of them. as well as the prices. Positive customer based brand equity is w hen consumer react more favorably to a product. feelings. favorable. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Brand resonance model 1. strong. beliefs. images. and so on that become ass ociated with the brand. These categories of brand assets are: 1. sequential series from bottom to top: 9 FMS Dept.FMS Dept. Brand Equity model – Brand resonance2 – The brand resonance model also views brand b uilding as an ascending.. Customer based brand equity2 can b e defined as the differential effect that brand knowledge has on the consumer re sponse to the marketing of that brand. for example Ruf & Tuf jeans were int roduced as youthful and sturdy brand. feel. Meaning . Brand equity is an important intangible asset that has p sychological and financial value to the firm. 3. or tangible – related to product perform ance of the brand. experiences. 5. In particular. an d unique brand associations with customers. term. Branding thus is a means to distinguish one product from another and these differences may be functional. Brand knowledge2 consists of all the thoughts. market share. symb ol. profitability that the brand commands for the firm. National Institute of Fashion Technology. Identity . 4. National Institute of Fashion Technology.Ensuring identification of the brand with customers and an associa tions of the brand in customers mind with a specific product class or customer need 2. intended to identify the goods and servic es of one seller or group sellers and to differentiate them from those of compet itors‟. Brand loyalty Brand awareness Perceived quality Bran d associations Other proprietary assets such as patents. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories “Building a strong brand requires careful planning and a great deal of long term i nvestment.eliticiting the proper customer responses in terms of brand relate d judgement and feelings   .. sign.

11 FMS Dept. with social and economic implication.converting brand response to create active loyalty relationshi p between customer and brand. Brand judgments focus on cus tomers‟ own personal opinions and evaluations. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Brand feelings are customers‟ emotional responses & reactions with respect to the brand. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories “Fashion begins and ends with the customers” – Stephen Frings4 Fashion & its relation with brand As per Graca Guedes5 .to the three components of fashion – style. National Institute of Fashion Technology. bu t they are also determined by it. announced by authors like Frings. acceptance and s tyling. From this new trend. Packard et al and Wolse. Those three components orient this new element the brand. Brand imagery deals with the extri nsic properties of the product or service. Brand resonance refers to the nature of the relationship that customers h ave with the brand and the extent to which customers feel that they are “ insync” wi th the brand. including the ways in the brand attem pts to meet customers‟ psychological or social needs. Brand performance relates to how the produc t or service meets customers‟ functional needs. Relationship . 10 FMS Dept. Marketing communication applied to fashion products Marketing Communication Advertising Public Relation Promotion Direct Marketing Special Events Fashion shows Sales force Store Visual merchandising . National Institute of Fashion Technology.4.. a fourth elem ent has been added.. Brand Salience relates to how often and easily the brand is evoked under various purchase or consumption situations. emerge 2 different concepts of fashion products: the fashion global product and the market segment fashion product.

The adoption process of fashion products reflects the great influence of the ima ge of fashion that it transmits as well as its inherent identification potential (social. In fashion pro ducts.. . cultural and economic). The brand may benefit from a greater reputation a nd higher proximity to its buyers if the design of each collection takes in cons ideration the following aspects: In order to keep or develop the value of the sy mbolic speech of the products. and developed through the image of fashion transmitted by each seasonal coll ection and by all activities of marketing communication. The overall effect of f ashion product branding depends on the 12 FMS Dept. Recognizing this. both mental representation and its perception are built in a continuous w ay. the marketing stimuli. This process. both determined by the c haracteristics of consumers‟ perception. All these three elements have an impact over the adoption process and a similar final goal: to influence the pur chase option of fashion products through the satisfaction of a certain fashion i mage demand. An effective fashion image developed through the seasonal collect ions. National Institute of Fashion Technology. the brands‟ image management should be focused in o ne particular style. consumer searches for fashions that more nearly fit his/her own needs and wants. It is a multi dimensional phenomenon that depends on the perception of those attributes and benefits. allows the brand to achieve image coherence and to capitalize on it in the market by building global brand.The market of fashion products is highly competitive market whose main character istics is the similar positioning of a large number of brands and. rather than those of the idealized people who in the past have appeared in advertisements and commercials. in this respe ct the brand‟s image developed by marketing communications can influence the adopt ion process of the products. The image is a mental representation of t he brand or product attributes and benefit. a side with th e intention to influence the purchase decisions must transmit similar messages i n all communication support. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories integration of all the components of the marketing communication plan. The harmony of this complex process must consider s uch aspects as the brand awareness and the brand image. The brand image in the marketing communication process Brand Identi ty Brand awareness Idea Personality Characteristic Brand Brand Image Product User Benefits Attributes This system reinforces the need to develop of the brands‟ image considering the im plications over the brand identity and awareness of what confirms the importance of fashion products branding. including visual merchandizing. besides its basic functions – to protect the bod y. The consumer buys or uses fashion products of different typ es and styles. with the product design.

National Institute of Fashion Technology. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories The store image in marketing communication process Image store Idea Geographic Location Visual Merchandising Exterior Design Interior design other Architecture LAYOUT Space design Display & Fixture Windows Lightening & music Signs Sales assistant Package The store image development is established through its geographical location. If someone is shown a list of brand names or pictures of packages.. Brand preference and Brand users. which image of itself should match customers impressions of the store. Brand u . but reflects the relative strength of tha t awareness in relation to the target market‟s awareness of other brands in the ca tegory. those come to mind represent recall brand awareness. National Institute of Fashion Technology. those that can be identified represents recognition brand awareness. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Qualitative research It is necessary to assess the strength as well as understand nature of the brand‟s equity relative to competitive brands. Brand salience depends upon awareness. The combination of these factors defines the store atmosphere of look or the pe rsonality of the store. Assessing the strength of brand equity3 according to Richard Elliot & Larry Percy can be done by finding Brand awareness & salience.13 FMS Dept. Preference for a niche brand may be high in its market segment.. as well as by the pro duct that it offers and their representation in the internal space of the store. th e commercial zone where it occupies & its external design. This relationship will be reflected in the relative relationship between what is known as „top-of-mind‟ awareness and all the other brands in the category o f which someone is aware. Brand awareness according to Sroll reflects the extent to which people can either reme mber or recognize a brand. When people think about brands in a product category. Brand preference. Brands that are preferred are likely to en joy greater equity than those that are not. like brand salience. can be an indic ator of the strength of brand equity. they are recalled based on ly upon a category cue. and to track it over time. 14 FMS Dept. but relatively low in the market as a whole.

pie chart. users of competitive brands. 12 Edition. I think Indian people love brands. 15 FMS Dept.31 Paper . Chapter 9 Page No 273 th Marketing management – Kevin lane Keller & Phil lip Kotler. 12 Edition. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Objectives 17 FMS Dept. Co-relation analysis Co-relation between two attributes hav e been computed to understand the relation between each other and how one attrib ute affects the other. National Institute of Fashion Technology. rank correlation etc. Marketing management – Kevin lane Keller & Phillip Kotler.sers or category understanding is one of the primary function of quantitative re search and specifically users of a brand vs. Instituto Politecnico do Porto – ESIEG (Portugal). Based upon this.. Indian Edition. a marketing approach. National Institute of Fashion Technology. Chapter 6 Auditing and Measuring Brand equity.. Simple bar graph. 6 Edition chapter2 page no. Microsoft Office Excel 2007 – The primary data collected was input in excel sheet and with the help of various formula it was easy to do data analysis. Notes 1. The purpose is to simplify the presentation and to mak e comparisons. doughnut chart etc are outcome of Micros oft office Excel 2007. 2. may be becau . 110 th Fashion – From consumer to concept – Stephen Frings. one is able to „profile‟ various user segments. 3. th 16 FMS Dept. There isn’t anoth er American designer on this soil..Branding of Fashion product : a communicati on process. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories “The Indian Economy is soaring. Page no. by Graca Guedes. 5. Universidade Do Minho (Portug al). may be because they don’t know it. Chapter 9 Page No 274 onwards Strategic brand management – Richard Elliot & Larry Percy. 4. to do v arious analysis like correlation. SPSS & Microsoft Office Excel 2007 SPSS – Statistical Packa ge for Social Science is the key software used to prepare complex graph. Paula da Costa Soares. Percentage analysis The collected data which is present in the fo rm of percentage will help us to get the clear cut picture of the contribution o f various responses. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Statistics Tools Tabulation The collected data is arranged in the form of rows and columns that i s in the tabulation form. which are us ed in Minor project. National Institute of Fashion Technology. regression.

. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Consumer confidence and consumer market in India Consumer Confidence . with 34 percent of consumers across the globe planning to spend on a well-earned vacatio n. To study th e environment for the apparel & retail sector in India. 5. Holidays and vacations continue to be a popular choice. up 4percent in the last six months. 3. National Institute of Fashion Technology. 20 FMS Dept.se they don’t understand it. To find out consumer prefe rences with respect to brands with the help to primary data and SPSS. with four in five (79%) of consumers optimistic about the size of their wallets. India and Indonesia lead the charge.. Spending and Attitude to recession. I care about it. National Institute of Fashion Technology. 18 FMS Dept. 46 percent of global consumers claim they put their spare cash into savings. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Consumer Markets – KPMG report2 Indian consumer markets are changing fast. Consumer confidence worldwide ha s fallen to its lowest level in several years. To study the consumer confidence and consumer market in India. To find out consumer preferences with respect to brands with the help of secondary data. National Institute of Fashion Technology.. 2. (fig on next page) 19 FMS Dept. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Bullish Denmark. with ra . the definitive gauge of cons umer sentiment around economic and social concerns across 51 countries After mon ths of speculation and uncertainty around the global economy. Concerns. I am e xcited about it and I feel very positive that we are going to build a wonderful lifestyle business here. it appears the pen ny has finally dropped for the world‟s consumers. To understand the buy ing pattern of the consumers in India. up 2 percent from si x months ago.AC Nielsen report1 According to AC Nielsen‟s Consumer Confid ence.” – Tommy Hilfiger. One in three (32%) consumers chooses to buy new clothes. where an average of 57 percent of consumers chooses to build t heir nest eggs. The world‟s most avid savers have always hailed f rom Asia Pacific. International fashion icon4 The objectives behind our minor project “Critical analysis of brand preference for apparel and accessories” are: 1. may be because they don’t care. 4.

hungry to enter this market. In the pas t 4 years alone consumers spending rose an impressive 75%. 000. Local hypermarket retailers are moving aggressively to get ahead of further loosening of foreign investment regulation. Carrefour. Another 75 million households are in the category of „well off‟ immediately bel ow the affluent. Its population is less urbanized th an almost every other comparable economy.3 trillion $ by 2018. the development of modern urban lifestyles. India‟s retail market opportunity is unchallenged. Jharkand. Bharti will own reta il shop under the Wal-Mart franchise and Wal Mart will operate logistic. but increasingly brands have to be associated with value. shopping mall projects are running resource constr aints that are delaying completions and destructing many retailer entries strate gies. In dian consumers are becoming increasingly sophisticated and knowledgeable about p roducts. for example. Uttar Pradesh and Orissa a re officially destitute. with household income in excess of INR215. Taking their c . National Institute of Fashion Technology. single brand retailer can own a 51% majority stake in j oint venture with a local partner. while large rural areas of Bihar. But challenges have e merged that could potentially slow the pace of growth for new global entrants – st ifling regulations.. its retail market is larger than ever and drawi ng both global and local retailers. At 511 billion $ in 2008. including Wal-Mart and Metro. as a democratic country with a high growt h rates.pid growth in disposable incomes. numerous retailers inc luding the SPAR group. Under India‟s current laws which the government r elaxed somewhat in 2006. continue to frustrate by re strictive government regulation. Tesco and Carrefour. which must operate thr ough franchise or cash & carry wholesale format.000. Organized retail which still accounts for le ss than 5% of the market.India continues to be among the most attractive countries for global reta ilers. is expected to grow at Compound Annual Growth Rate (CA GR) of 40% from 20 Billion $ in 2007 to 107 billion $ by 2013. In addition. Earlier entrants. Accordingly. soaring real estate costs and fiercely competitive domestic retailer groups. Gujarat and Maharashtra are around five times the level in Bihar. have plans for a blitz ac ross the country. federal India also has a highly uneven pattern of w ealth. The market is also highly regional. Wal-Mart recently joined forces with Indian telecom giant Bharti enterprises. In the past couple of years. Such relaxed regulation does not extend to mu lti brand retailer such as Wal-Mart. Literacy rates are lower than in most Asian competitors and income is less well distributed across the whole populatio n than in most Asian competitors. Foreign brands remain very powerful in India. Of these only a little over six million are „affluent‟ – that is. Average state incomes in Punjab. Consumer’s spending has risen sharply as the youth population (more than 33% of the country is below the age of 15) has been a significant increase in its disposable income. A patchwor k of cultures and languages. media channels that allow companies to communicate with consumers are g rowing in diversity and reach. India has more peop le living in poverty than any other country. Tesco and Kroger will feel additional pressure as the situatio n grows more competitive. India‟s overall ret ail sector is expected to rise to 833 Billion $ by 2013 and to 1. esp ecially in clothing and personal care products. According to recent data from India‟s Marketing Whitebook by BusinessworldIndia has around 208 million households. earning between INR45. at a CAGR of 10%. Marks & Spencer and Nautica have entered the m arket. procure ment and storage activities. Global retailers. Consequently. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Environment for the apparel and retail sector in India ATKearney Report According to The 2008 AT Kearney3 Global Retail Development Ind exTM . Some urban areas continue to be richer on average. India‟s consumer markets are unique.000 and INR215. 21 FMS Dept.

so it scores 81. and Actis investing in the supermarket chain Nilgiris. companies are pursueing new busin ess models. K Raheja Corporation and Reliance have all take n an early 22 FMS Dept. Although the workforce continues grow rapidly (with more women and farmers entering). Still.. Within each metric. The retail apparel index is comprised of market indicators 55% and growth indicators 45%. the Ta ta group‟s Trent. Reliance restructured and is now pursuing joint venture opportunities with international retailers such as Office Depot. a country is assigned points based on it s value on the metric against the largest sample. the Wadhawan Group acquiring small regiona l retailers. china has the largest total sales at $ 93. RPG enterprises. Brazil has $ 76 Billion in total clothing sales. For example. compound annual growth rate (CAG R) in clothing imports and clothing sales per capita. 23 FMS Dept. apparel will be among the highest growt . The Global Retail Apparel Index 2008 Rank 1 2 3 4 5 6 7 8 9 10 Country Bra zil China India Turkey Chile Romania Argentina Thailand Russia UAE Absolute mark et size 45 74 57 29 22 21 21 22 52 31 Growth prospects 33 22 37 37 47 54 44 25 2 2 42 Consumer affluence 42 36 31 59 44 34 39 57 39 28 Score 48 47 47 46 46 45 41 40 39 38 ATKearney Retail Apparel Index analysis evaluates more than 30 apparel markets t o identify the top 10 countries in terms of market size.2 billion consu mers. Season business such as Reliance & Aditya Birla are locking at the upstream value chain (farms. total and youth population & clothing sales per capita. This is causing concern over the pace of change and could be another speed bump on the road to India‟s 1. growth prospects and co nsumer affluence. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories lead due to ambitious expansion plans. so its scores 100 points in the metric.5 times 100) Apparel is India’s second large st retail category (behind food & grocery). population growth and CAGR of GDP per capita. For example. Market indicators include total clothing sales and i mports. The real est ate costs are prohibitive and the cost to acquire to train and retain workers ha s increased as more lucrative work opportunities emerged. P rojected to reach $ 37 billion for 2008. National Institute of Fashion Technology. large retail outlets hold a strong appeal for customers even though they place India‟s 4 millio n to 6 million mom-and-pop shops at risk. The industry is also beginning to consolidate with Aditya B irla acquiring Trinethra Superretail. National Institute of Fashion Technology.4 points (76 divided by 93. logistics and storage) to better their positions once they begin competing directly with the likes of Wal Mart.ue from success of hypermarket in china local retailer such as Pantaloon. As the retail industry in India matures. representing 10% of retail market. Marks & Spence r and Neiman Marcus. it cannot keep u p with the growth across all the business sectors in India.5 billion.. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Growth indicators include total clothing sales.

Customers tend to be loyal to a specific retail er – Shopper’s Stop. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Ernst & Young Report According to Ernst & Young retail report4 the organized ret ail in the year 2002 is of 1075 $ million and is expected to grow with CAGR of 1 6%. Local firms such as Future Group are having sales of $ 845 million. Discretionary spending has seen a 16% rise for the urban upper and middle classes and the number of high income househ . festival promotion and specia l events. T his has led to a thriving private label apparel market for ready-to-wear clothes and more competition. a mass mark et family store modeled after GAP and Old Navy. Its principal formats include pantaloon. a departmental store chain & B ig Bazaar. brands as Benetton. It has more than 5 million sq feet of retail space in roughly 450 stores across 40 cities. Mean Annual disposable income is growing at more than 6% CAGR. own retail outlets and franchises. Louis Phillipe. A key challenge for apparel retailer in India is to induce customer to purchase quickly. which means sales promotion tac tics are important. National Institute of Fashion Technology. including end of season sales. Other facto rs supporting these brisk growth rates include more apparel focused shopping mal ls continued penetration of credit cards organized apparel retailing in tier 2 a nd tier 3 cities the popularity of ready-to-wear clothing and western fashion fo r women. Shopper‟s Stop has 5 million sq feet of retail acr oss 88 stores in 12 cities. Van Heusen a nd Esprit are capturing a strong following among Indian consumer. There is a flu rry of activity across all price points. National Institute of Fashion Technology. Madura Garment joined Peter England People. hypermarkets... consumer spending is expected to increase 8% per year. India has one of the youngest populations in the world with 5 4% of the population below the age of 25. The rapid growth is supported by the b urgeoning Indian middle class. Westside & Pantaloon – instead of any particular apparel brand. Discounter Koutons has opened ne arly 1000 stores in the past few years. 24 FMS Dept. organized retail will r epresent roughly 10% of the total market. The top 7 competitors represen t less than 10% of total market. India’s apparel market is highly fragmented. Still. In 2008. The clothing segment (2005) is positioned for further organized retail penetrati on due to the high level of branding activities by apparel retailers and merchan dising spread across formats such as department stores.h categories. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Understanding buying pattern of consumers in India According to Ernst & Young report4 Indian consumers‟ lifestyle and profile is also evolving rapidly. with new concepts and brands being laun ched almost every month. a hypermarket chain. However. The group plan 6 million square feet of retail space by 2011. with a CAGR of between 12 to 15%. 25 FMS Dept.

as there is a greater focus on lo oking and feeling good (apparel as well as fitness). nearl y 40% of mass-market Indian shoppers McKinsey5 surveyed said that their most imp ortant shopping occasions revolved around special events such as weddings and an nual religious festivals – a figure dramatically higher than the one for shoppers in the other emerging markets McKinsey studied. However. Furthermore.. homes. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Food & Grocery (USD154 billion) contributes about 41% of private consumption exp enditure and about 77% of total retail sales. At the same time. and the habit of Indian shopper present intriguing challenges for multinationals eyeing the market. In such a scenario. National Institute of Fashion Technology. But the countries lower per capita income levels means overall spen ding on apparels is significantly lower. retail sales constitute about 61% (USD 230 bill ion). Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Consumer Preference for apparel brands India devotes roughly the same share of their income to apparel as do Chinese an d Brazilian. especially mobile ph ones and two and fourwheelers.000 cr ores (USD 375 billion) of which. The sector is defined by low gross margins. in addition to consumer durables and loan credit purchases. b ut there is a tremendous growth potential in the organized sector in the form of hypermarkets. Clothing is the second largest segment in terms of retail sales. This is one of the primary reasons for India‟s low organized retail penetration rate. There is an increasing shift f rom price consideration to design and quality. There is an easier acceptance of l uxury and an increased willingness to experiment with mainstream fashion. Finally. T his has driven growth in consumption of productivity goods. National Institute of Fashion Technology. 40% of primary wage earners in the top 2-3 social classes in towns with a po pulation of 1 million or more are self employed professionals and businessmen. credit friendliness. supermarkets and hard discount chains. this segment is largely c ontrolled by the unorganized small outlet sector -penetration of organized retai l is about 1% in this segment. The 4 ma jor organized retail sectors are Food & Grocery Clothing Consumer Durables Books & Music In 2003-04. private consumption expenditure in India amounted to Rs 1. 26 FMS Dept. the new I ndian consumer is not beguiled by retailed products which are high on price but commensurately low on value or functionality. cars) has shifted to becoming redefined as consumer revenue e xpenditure.690.olds has grown by 20% year on year since 1995-96. The self-employed segment of the population has replaced the employed salaried segment as the mainstream mark et. This r esults in an increased tendency towards disposability and casting out -from appa rel to cars to mobile phones to consumer durables. Capital expenditure (jewellery. to a greater extent . pricin g and network will be the key to success. drop in interest ra tes and easy availability of finance have changed mindsets. 27 FMS Dept. For starters..

National Institute of Fashion Technology. Mumbai Minor Project 08 . in India women ar e the primary decision makers in apparel purchases for the entire family. According to McKinsey5 survey young Indian aged 18 – 24 years strongly trust brands from their own country but also believe that foreign brands are of higher quality than local brand. and 74% . Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories It is evident from research that in 6 months Indian‟s spent 59 (Rs. As in many markets. This is why the apparel brands are targeting the you th in BRIC countries including India.. China and Russia view shopping as the best way to spent time with fam ily. 30 FMS Dept. Mass – market apparel retailer m ust therefore find formats and merchandising approaches that will attract shoppe r‟s seeking apparel not only for special occasion but also appealing to entire fam ily. I ndia is unusual in that the market for men‟s apparel is larger than women‟s market. high-end or “global” consumers are those in socio economic class (SEC A).than else were shopping is a family activity in India. half of McKinsey survey respondent s aid that their husband had a major influence on which stores they frequented – a p roportion far higher than Brazil (3%).more than twice than average of Brazil. What‟s more.5 trips per six months and average spending is also much higher than the average spending. But In dia‟s men also have an important role – indeed. rather than using only income bands to defi ne category of consumers. income segments. 4838) which is lowest in BRIC countries. In India. 29 FMS Dept.. mass-market consumers are those in SECs B and C. National Institute of Fashion Technology. National Institute of Fashion Technology. 28 FMS Dept. but 38% of Indians buy clothes for special events lik e festivals and weddings. In addition to household inco me the class code incorporate the levels of education and occupation. Most of the youngster believe that domestic brands can compete with the foreign brands but they would like to purchase foreign brands. China (8%) and Russia (18%).. The preference for family – oriented shopping is consistent across age groups . Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Young generation (Youngistan) frequently goes for the shopping of apparels which is average of 4. where traditional Indian apparel still dominates. Most of Indians shop with family and friends which is 68% highest among BRIC countries. we use the socioeconomic class code established by the Market Research Society of India. Age groups of 18 – 24 years and 25 – 34 years would like to spend more on apparel if their income increases instead of saving. and str uggling consumers are represented by SECs D and E. regions and city sizes. nearly 70% of its shoppe r‟s always go to stores with their family.

service category.54 5 5 & more 33 FMS Dept..24 25 .44 Age in years 45 . Sam ple Unit The sample unit consists of people of age group ranging from 18 years t o 55 years & above. Male: Female: 65 51 Students: Salaried: 34 82 Primary Data Collection The primary data is that which is collected for the firs t time. 26% for all purpose use. 10% for g oing to work. 32 FMS Dept. 31 FMS Dept. emplo yees. 25% in order to wear at home. National Institute of Fashion Technology.. Limitations: The duration of survey and its geographical extent is one of the limitations. A conscious effort is ma de to cover each and every type of category of people and to cover almost all th e region of Mumbai. doctor. and thus happen to be original in character. National Institute of Fashion Technology. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories . The sample consists of students. S ample Size The sample size of the survey is 116 people. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Sample Analysis Demographic Classification . Clearly and understandably set o f questions had been printed and got filled by 116 people for their valuable res ponse. For more authentic and relevant results a larger sample size w ith a greater geographical reach can be considered at later stage.. For this study questionnair e method and interview method has been adopted.SampleAge Groups 60 50 No. of people 40 30 20 10 0 15 . Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Primary Data Analysis with help of SPSS Sample Design A sample design is a definite plan for the obtaining a sample from a given population.Critical Analysis of Consumer Brand Preference for Apparel & Accessories In India 23% people buy clothes for going out with family and friends.34 35 . Indian‟s are in the list of top 10 countries which disagree that designer brands are of significantl y higher than standard brands. A majority of patrons in a sample were selectively chosen t o make the sample represent the universal population as closely as possible. manager. and majorit y of 38% for special occasions. According to Nielsen survey6. National Institute of Fashion Technology. professors and housewives. engineers. government employees.

2000 . and street shop.Shopping Preference – Time Period & Format of store Shopping Time Period 8% 7% 16% every week every month 38% every 3 month every 6 month every year 31% It is evident from the pie chart that 38% of the total population prefers to sho p every month. Retail format preference 70 60 No. 1000 – 2000 Every week 2 2 Frequency E very month 5 19 of Every 3 months 1 18 shopping Every 6 months 2 6 Every year 1 2 Rs 2000-3000 2 17 13 6 3 >Rs. Average spending of customer < Rs.3000 35% Rs. 1000 . 1000 to 2000 shops either e very month or every 3 months. exclusive brand outlets. In India internet shopping is n ot so popular. 3000 2 3 4 5 3 . 1000 9% Rs. 3000 15% < Rs. out of 116 samples no one preferred internet shopping for garment and accessories. 1000 Rs. of people 50 40 30 20 10 0 EBO No.2000 41% 41% of the consumer spends between Rs 1000 – 2000 whenever they shop garments and accessories. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Customer spending & its relation with average frequency of spending Customer Average Spending > Rs. It can be con cluded that majority of the consumers who spends Rs. of People 15 MBO 65 Discount Store 27 Street Shop 7 Int ernet 0 Multi Brand outlet leads the preference of retail formats followed by discount s tores. National Institute of Fashion Technology.. 34 FMS Dept. SPSS analysis tool (Reports – 123 Summaries) enables us to know the relation betwe en the average spending of the customer and frequency of shopping.

Esha Deol (Provogue). National Institute of Fashion Technology. Yuvraj Singh (Donear). Akshay Kumar (Levis 501). Reebok (Shah Rukh Kh an – Main hoon Na). Celebri ties in Movies: Louis Phillipe (Don – Shahrukh Khan). of People Media Out of 116 people. 39 notice the fashion brands in newspaper followed by 28 peop le in the magazine.35 FMS Dept.. etc. Spykar Jeans (Golmaal). Saif Ali Khan (Provogue ). the most preferred media for the male is Newspaper and Television and for female is Magazine and Newspap er. Models & Designer: Milind Soman (Excaliber). Hrithik Roshan (John Players) etc. Polo Sport (Shah Rukh Khan – Kuch Kuch Hota Hai) etc. Su nil Gavaskar (Dinesh). From SPSS Population pyramid graph. 36 FMS Dept. Pantaloon (Na tum Jano na hum). Van Heusen (Ghajini – Amir Kha n). Sport stars: M ahendra Singh Dhoni (Siyaram). Amitabh Bachann (Reid & Taylor). internet and movies are not much popular media. Abhi shek Bachann (Flying Machine). . National Institute of Fashion Technology. Kangana Ranawat (Levis). Maria Sharapova (Nike). Rohit Bal (Linen Club) etc. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Influence of Celebrity endorsement for fashion brand Do Celebrity endorsement influence brand selection? Agree 9% Disagree 28% Somewhat agree 28% Somewhat disagree 10% Indifferent 25% The various fashion brands are being promoted by celebrities such as: Actors: Sh ahrukh Khan (Belmonte).. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Types of Media Influence for Fashion Brands on people 39 40 35 30 25 20 15 10 5 0 Media Preferred for Fashion Brands 28 23 16 7 3 No.

National Institute of Fashion Technology. so proximity of store does not play i mportant role.46 3.. National Institute of Fashion Technology. latest design and price should be affordable. Indian Brands Vs. National Institute of Fashion Technology. Ambience of store does not matter in consumer buying preference directly but it helps in impulse buying and increasing foot falls.5 1 1.99 2. type of merchandise etc before buying? Impulse Buying Planned Buying Does Indian Fashion Brands have standards that of International Brands? International Brands 48% Indian Brands 52% 39 FMS Dept. Indian consumers are price conscious as it ranks third among all the attributes..64 4.09 4. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Impulse Buying Vs. Unlikely in America and Europe people are brand and fashion conscio us but here people need “value for money”. color. Brand comes fourth in ra nking according to the survey. Design is the second attribute preferred while selecting the garment and a ccessories. Indian‟s are not so brand conscious and brand l oyal.37 FMS Dept. which means the product should be of best quality.99 1. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Relative Preference of consumer while selecting garment & accessories Store Proximity Store Ambience Price Quality Design Brands 0 0.5 4 4.81 4. Attributes of store such as proximity of store an d ambience of store comes last in the priority of Indian consumer.5 2 1. 38 FMS Dept. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories .. prefered the most (best is 6) From the chart it is clear that Indian‟s give first priority to Quality while sele cting the garment and accessories.5 3 3. International Brands Do consumer plan brand. Shopping and mall visit is the most preferred pass time for the I ndian consumer. Consumers do shopping on an average for every 3 months.5 5 More the score. Planned Buying.

Conumer Markets in India –the next big thing? – KPMG report – September 2005. majority of male select a particular brand over a nother due to brand image but majority of female purchase a particular brand ove r another brand due to shopping experience.Consumer Confidence concerns. Thus proper category management and catchm ent can improve branding and brand loyalty in India.nielsen.. Another observation is that Indian cons umer is quality and price conscious rather than brand conscious which means ther e are very few brand loyal customers.ey.Emerging opportunities for G lobal Retailers – The 2008 AT Kearney Global Retail Development Index (www. In multi brand outlet. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Consumer stand on Emergence of Women & Kid’s wear brand Emergence of Women & Kids wear in India Not Possitive Move Possitive Move 0 20 40 60 80 100 120 Conclusion In India the branding in the garments and accessories is in the growth phase. Overall preference for one brand ove r another is the shopping experience for a particular brand. and India. 2007 (www. 40 FMS Dept.mckinsey. Spending and attitude to recession. (www.atkearn ey. China.com) 4. Celebrity endorseme nt is not much considered while choosing one brand over another. Co nsumers have started identifying and preferring branded products over unbranded products due to growth in retail sector.kpmg.com) 2.The Mckinsey Quaterly – How half the world shops: Apparel in Brazil.com/in dia) 5. National Institute of Fashion Technology. (www. a global Nie lsen report – June 2008.com) 3. Notes: 1.The Great Indian Retail Story – Ernst & Young Report – 2006 (www.Selection of one brand over other Consumers who purchase the fashion products from Exclusive brand outlet prefer s hopping one brand over another only because of the brand image of the particular brand.com) 41 .

Please Tick how often do you shop clothes & accessories? Once in a Once A wee k month Once in 3 month Once in a year Once in 6 month 2. How much do you spend on an average for shopping for clothes & accessories? < Rs 1000 Rs 1000 .3000 > Rs 3000 3. (1 is most preferred and 6 is least preferred) Brand Price Design Ambience of St ore Quality Proximity of Store 7.. What will you consider while choosing a particular brand over another brand of similar product quality and price range? Brand image Celebrity Endorsement Sh opping Experience 42 FMS Dept. Is the entry and emergence of women and kids wear brands in India a positive move in India? yes no 10.2000 Rs 2000 .. Where do you shop apparels often? (Please tick any one) EXCLUSIVE BRAND OUTLE T MULTI BRAND OUTLET DISCOUNT STORES STREET SHOP INTERNET 4. Mumbai . Does a celebrity endorsement influence your brand selection? Agree Somewhat a gree Indifferent Somewhat disagree Disagree 6. type of m erchandise etc before shopping? yes no 8. Which attribute matters most while selecting apparels? Rank your preference.FMS Dept. Mumbai Minor Project 08 Critical Analysis of Consumer Brand Preference for Apparel & Accessories Appendix Name:_________________________________Age: _____ Gender:_________ Email Id:_____ _________________________ Occupation:_________________ 1. National Institute of Fashion Technology. National Institute of Fashion Technology. color. Where do you notice Fashion brands maximum (often)? (Please tick any one) New spaper Magazine Television Hoardings Movies Internet 5. Do you plan particular brand. Do Indian Fashion Brands have standards (quality. design) that of Internation al Fashion Brands? yes no 9.

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